Preprint Article Version 1 Preserved in Portico This version is not peer-reviewed

A Model for Managing Airlines in a Highly Competitive Environment, including the Case of Cost Impact Due to the New Environmental Regulations

Version 1 : Received: 17 January 2024 / Approved: 18 January 2024 / Online: 18 January 2024 (07:19:31 CET)

How to cite: Jaume, J.; Alonso, G.; Benito, A. A Model for Managing Airlines in a Highly Competitive Environment, including the Case of Cost Impact Due to the New Environmental Regulations. Preprints 2024, 2024011379. https://doi.org/10.20944/preprints202401.1379.v1 Jaume, J.; Alonso, G.; Benito, A. A Model for Managing Airlines in a Highly Competitive Environment, including the Case of Cost Impact Due to the New Environmental Regulations. Preprints 2024, 2024011379. https://doi.org/10.20944/preprints202401.1379.v1

Abstract

The air transport industry has experienced important transformations over the last decades, despite its continuous global trend of growth. After air transport liberalization process, the present market situation depicts a reduced number of large hub & spoke airlines and an important number of so-called low-cost carriers (LCC). One may wonder why airlines that were once thriving and profitable before liberalization have disappeared, some even recently amid an expansion in demand. To answer that question and others related to it, this paper proposes a management model focused on the airline business, putting in relation the main variables defining the business behavior of an airline. The lessons learned from the past, and the solutions gathered from the model related with, will provide a sound basis to address the new challenges for the next years to come, as it is the case of the new environmental regulations focused on the air transport decarbonization.

Keywords

Airlines; Air transport liberalization; Competition; Management Model; Environment regulations; Decarbonization

Subject

Business, Economics and Management, Business and Management

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